Asides from millennials receiving negative criticism for being self-entitled, lazy, and unambitious, they also get a lot of slack for having bad money habits. It is calculated that millennials could save £64,000 in five years for a mortgage deposit, so why are they keener to put their money towards travel?
As well as this, it is often contemplated why millennials’ travel habits are so different from any other generation. If you are also curious, find out why British millennials travel more and save less today!
1. Social Media
In the current worldview we live in, sharing one’s experiences on social media seems almost like a bodily reflex. Amongst our 7.6 billion world population, the internet has 4.2 billion users, of which 3.03 billion are active social media users! But, what do millennials think?
Well, according to a survey conducted by Eventbrite, 60% of millennials consider experiences to be better if they are shared on social media channels. With millennials so invested in this social sphere, it is not surprising that there is an added social media pressure, more now than ever. We are so used to seeing people live out lavish and luxury lifestyles on social media, that it can pressure us to do exactly the same because, well, the internet demands it! A recent study revealed that a massive 52% of the users on Facebook dream about going on holiday whilst browsing the channel, even when they were not initially planning to go anywhere. As well as this, it was disclosed that 69% of millennials regret not booking a spontaneous trip due to the fear of missing out, also known by the majority of millennials as FOMO.
With the constant depictions of luxurious and opulent lifestyles paraded all over social media, user-generated content has not only evolved into a norm, but a lifestyle standard that millennials strive to reach.
Interesting Fact: A study by Travelport revealed that 87% of British millennial travellers use social media apps for inspiration and information when they travel.
2. Saving Is Made Hard When You’re In Debt
Millennials face financial challenges that their parents didn’t. The most notable one being student debt. University tuition fees were first introduced in 1998, where you were required to pay £1,000 per academic year. Since then, they have increased up to £9,000 a year. This yearly fee, combined with maintenance and living costs, has caused students to be riddled with huge amounts of debt upon graduation, which can take years and years to repay.
The current value of student debt at the end of March 2018 reached a whopping £105 billion! With this figure in mind, the government predicts that the outstanding amount of debt will be £450 billion by the middle of this century. Consequently, the prospect of savings is valued as an expensive luxury that many millennials cannot afford.
3. They Can’t Afford To Buy A House
Industry experts have expressed that it is highly unlikely that millennials will get on the housing ladder and that one in three British millennials will never own a home due to inflating living costs. Because of this, millennials feel that it is unrealistic to believe that they will save up enough to afford property, especially with the added on financial struggles.
In reference to a study by Gfk, it was found that millennials spend around £150 billion globally on tourism every year and that they would rather save up for travel and holidays, alternatively to saving up for a car or a house. With the potential of owning a home so far out of reach, millennials opt to spend their money on regular holidays, creating memories, over anything else.
As well as this, millennials are seen to be switching jobs on average every three years. So, the question millennials are likely to be asking themselves is: Why scrimp and save for a mortgage on a house when you are not even sure you will be there?
4. Travel Is More Affordable
People are travelling more now than ever before, and it may be due to the fact that travel has become more affordable. With the demand for travel increasing, there was more of a need to introduce affordable and flexible travel options and packages.
Pay monthly holidays, for example, makes travel a much more attractive option due to its flexibility, affordability, and its ability to offer millennials the opportunity to go abroad without having to pay the full amount upfront.
Scraping up the cash to pay for a holiday all in one go can be quite difficult. But with a pay monthly holiday all you have to do is pay a deposit upfront, and then the rest in easy to manage monthly instalments, up to two weeks before your holiday. What’s more, the flexibility of a pay monthly holiday means that you don’t have to opt for any old pre-approved package; you can be selective and choose exactly what it is you are looking for! For example, airlines now offer pay monthly schemes, so if you are able to pay for the hotel but unable to pay for the full sum of the flights upfront, you can fly now, pay later!
In 2016, 52% of the British public chose to leave the European Union. Whilst this means different consequences for a handful of different industries, concerns for the travel industry were among some of the biggest Brexit concerns, particularly for millennials.
Statistics compiled by YouGov revealed that the under 25’s age group (millennials) were more than twice as likely to vote Remain, with 71% voting to remain and only 29% opting to leave.
The Independent noted that holiday prices are expected to rise by 31% due to Brexit. So, with this in mind, isn’t it reasonable to believe that millennials are travelling more as a reaction to the consequences of the referendum results?
Contiki recently did some research that could support this. They looked into the travel habits of around 3,000 18-35 year olds, and the statistics that they gathered were interesting in relation to this topic. They found that millennials are keener to explore their neighbouring countries and experience more of the European culture than anywhere else in the world!
The results also revealed that Spain was at the top of 2018’s most-visited holiday destinations, along with France, Italy, Belgium and Greece, which also made it into the top 10. This particular research, combined with Brexit, indicates that millennials may feel the need to explore as much of Europe as possible whilst we are still a part of the EU, before Brexit plans come into place.
Millennials are twice as likely to suffer from stress as baby boomers reveals Willis Towers Watson. They are also the generation commonly dubbed as the most ‘anxious’.
It has been said that millennials also have a more all-inclusive understanding of health and wellbeing, and value emotional and psychological health as highly as the physical. As a result, they are beginning to realise the damaging and toxic results of a demanding, and stressful lifestyle, especially in a time of political and economic uncertainty. This, in itself, can offer an explanation as to why millennials are more likely to indulge in travel and holidays, alternatively to stressing about saving up and investing in the future.
7. Experiences vs. Possessions
We live in a period of technological and scientific innovations, and it has made us wise to the media and its influences, good and bad. Consequently, it has caused millennials to seek a more authentic experience and to value memoirs and experiences over material possessions.
Success is no longer measured by how much money you are earning, but instead of your individual growth and experience. This is why millennials seek to be a part of different cultures, participate in endeavours that allows one to grow spiritually, and ones that set themselves apart from previous generations.
Trail-blazers or stupidity?
Travelling has almost become a sort of ‘second nature’ for millennials. A way to be stress-free trail-blazers, and as a means to escape financial societal pressure. And whilst it may be a move away from tradition, who is to say that it is wrong? Is wanderlust something that should continue or is it an indicator of a hedonistic generation gone too far?